Tuesday, August 28, 2007

Yes the holders of gold and silver want a return to gold and silver of course...

But ultimately the bottom owes the top so all the gold and silver will get sucked to the top when you pay your bills...And it was the bankers who dreamed up the GOLD and silver standards...The Global banking system you see in operation right now is older than the USA...It's 313 years old.

Do you own/control any Gold or silver mines? Well then you are a slave and those that do are master...

The great depression was caused by the collapse of the German carry trade...

Basically the winning powers had Germany on the run retreating back into Germany in late 1918.

At the start France crossed Germany's border first and were repulsed and then Germany invaded France...That was a big mistake...

"ARTICLE 235 The Versailles Treaty June 28, 1919

In order to enable the Allied and Associated Powers to proceed at once to the restoration of their industrial and economic life, pending the full determination of their claims, Germany shall pay in such installments and in such manner (whether in gold, commodities, ships, securities or otherwise) as the Reparation Commission may fix, during 1919, 1920 and the first four months Of 1921 , the equivalent of 20,000,000,000 gold marks."

2790 Gold marks equalled 2.2 Lb of pure gold.

15,770,609 Lb of Gold or 7885 short tons of gold or 229,935,483 oz of Gold...

Quite a bit of GOLD...Especially when the total above ground stock around that time was 50,000 tons with around 25,000 tons monetary Gold world wide...

And Germany certainly did not have 7885 short tons of gold in 1919 1920 or 1921...

What to do then?

The Bank of England basically told Germany to print marks to buy GOLD...From? The winning powers...

The Looting of Germany carry trade...Germany printed marks and then bought Gold then the amount of GOLD they owed dropped and the winning Powers still had GOLD and loads of marks...what to do with all those marks? send them home to roost buying raw materials and finished goods...

The marks flooded into the German commercial banking system allowing it to inflate the debt supply in Germany...The more GOLD Germany bought the more marks they had to print...Which caused the purchasing power to drop...It was quickly losing it's value...

But outside of Germany all the currencies were quickly gaining value...Basically German exports were getting constantly cheaper and cheaper...A free give away of German raw material and finished products basically...

This fueled the Roaring 20's until the mark was losing value so fast that it basically caused prices inside Germay to hyperinflate until it was impossible to account...The looting of Germany carry trade collpased in 1924 after about 14 months of Hyperinflation of prices or a hyperdeflation of the value of the mark ...

side note...

Winston Churchill was Chancellor of the Exchequer (Treasury) of the United Kingdom from November 6, 1924 - June 4, 1929...

The collapse of the carry trade caused a hyperdeflationary implosion of the banking/monetary system in Germany and the shockwave spred out into the Global system and reached the USA by late 1926 and visibly manifested with the market crash October 21 1929...Since real estate began caving in first and the sell off there flowed into the Stock markets in search of yield inflating them from 1927 to 1929 in a massve mania...

The Great depression inside of the USA was caused by a collapse in debt inflation in the USA due to the implosion of the roaring 20's post world war 1 looting of Germany bubble..

It bankrupted the crown system which began to rapidly implode...It was stopped in 1933...

1933-1945 was the bankruptcy reorganization of the now 313 year old crown system...

The 1944 Bretton Woods Global trade system replaced it...The US Dollar replaced the British Pound Stirling as the Global Trade medium of exchange.

The majority of GOLD?

"As of 22 September 2005, the largest gold holdings in tonnes as reported by the World Gold Council"

Tonnes...1 Tonne is 1000 Kilograms and 1 Kilogram is equal to 2.20462262 Lb( Pounds)...14.5833333 troy ounces in one pound.

"These certificates (You know the ones with Woodrow Wilson's face on them? Pictured at the bottom of the post) are not paid out by Federal Reserve banks and do not appear in circulation. They bear on their face the wording: "This is to certify that there is on deposit in the Treasury of the United States of America dollars in gold, payable to bearer on demand as authorized by law."

US Government book value of gold is $42.2222 (currently) per troy ounce

Tuesday, August 21, 2007

The price of oil will collapse when the consumer does unless the oil producers cut supply quicker than demand is cut...There are bills that need to be paid...so producers that can will cut production and raise wholesale prices leading to retail price rises...and hyperinflations don't last long and are followed by hyperdeflations...

When Germany reached maximum potential in 1923-1924 their economy hyperdeflated...there were mass layoffs, food riots and German troops were machine gunning people in the streets...The less wonderful aspects of the cycle are not talked about much...workers getting paid with wheelbarrels of money is kinda entertaining...bodies of former workers laying in pools of blood in the streets is not...

It's impossible to inflate forever...so deflation is coming...one way or the other...and when deflation reaches maximum potential...inflation to maximum potential will begin...bury the dead and spray the blood into the storm drains...

The below chart shows the previous inflation of the USA next to the current...The difference between Germany and the USA is the speed...In Germany the inflation took months to reach maximum potential (It's why hyper is added to the word inflation) while in the USA it took years and in the case of the current inflation to maximum potential...decades...

Any hyperinflation that does show up will last months at most followed by a hyperdeflation...or the whole 1944 Bretton Woods global trade system just implodes to oblivion from this point...It's going to implode anyways...now or within a a handfull of months...game over...

And when Cramer is saying cash is king...all he is saying is that you should sell off all your paper assets in the markets to tards and sit on the sidelines...sell all your positions in the markets and buy silver and gold coins included...silver and gold coins are cash...in an inflation it's he who obtains the most wins...

lets say you get a ration of food every day...(inflationary phase) two cans...but you save one can a day until you have 365 cans...lets say the cans stop...for six months (deflationary phase) well all those without savings die of starvation...but you still have 182 cans of food at the end...many lost their lives during the deflationary phase...you only lost 182 cans of food, survived the deflationary phase and just replenish your stocks...

...in a deflation it's he who loses the least wins...

If you did not request more debt and had a source of income that was hyperinflating during a hyperinflation...you could easily pay off all your debts...money is debt and debt is money....So during a hyperinflation it's actually not the total money supply that is inflating...the total debt is...But not what you owe unless you request more debt to be manufactured...

With the household debt to income ratio at 110%...I don't see how a 1920's German style hyperinflation could even ignite...Because past 100% and consumers are forced to request commercial banks to manufacture less and less new debt...not more and more which is what is needed to sustain a hyperinflation...

Germany of the 1920's was a major exporter...The USA is a major importer...There is no manufacturing base to sustain a hyperinflation either...There will be mass lay offs...and laid off workers can't request much new debt to be manufactured with no source of income to service it's existance...

The only tool the FED has is their ability to monetize debt...The FED could buy all the assets that don't sell because they are priced too high...A lower price is a loss on the books...but...If there is no other buyer after that then inflation can not be sustained...Unless the FED then turns around and buys everything It just bought again by selling it all to itself but for a higher price...and that does nothing...

Basically it's all just talk to sustain consuer confidence...because if the consumer begins to think something is wrong...consumers will begin to cut back on spending...and the implosion of the US economy that is now in progress and moving very slowly will accelerate and move very rapidly...Before those managing it desire it to.

Those managing it are attempting to get to a point where it's planned to fall to pieces...While they are all babbling and creating a smokescreen to obscure the situation the scapegoat is being readied...A mezmerizing spectacle of some sort...to focus attention away from the system as cause and onto an effect as the cause...

The FED and Ben Bernanke are only effects of the system...they are not causes of the system...

You all did as your employers said...and if you were too lazy or out of shape to accomplish your tasks...you basically died...

That's how it was back in the good old days...It will be a return to the good old days...

most of you have no clue what work is anymore...A traditional "honest days work" would hospitalize or even kill most of you...

"'The spectacle of men fighting for work...' My God! This is terrible! Battling for the privilege of working all day for enough to eat--and the next day go at it again; and so on until the earth rattles on their pine boxes."

"Cannot the good God do something to relieve his wretched children? Or is this thing to go on forever? Why not give some good-hearted, honest man supreme power for four years, and let him improve God's world or blow it up. He could not make it much worse than it is, for the great mass of mankind. A judicious hanging bee in Wall Street would be a good measure with which to begin the reformation."

-- I.D. [Ignatius Donnelly] in The Representative, 29 August 1894

The 1896 depression in the USA is not talked about much...The so called "Great depression" was the last one and gets all the attention...

Well if the top...your source of income...collapses...they live on savings while you starve...So It's good to keep them from collapse as long as possible...Gives you all more time to continue to post. But ultimately they will collapse...and be forced to cut back on expenses and lay the vast majority of you all off...Then play time will be over...the top is just trying to make it to where they have planned to do that anyways...just now is not the time...

Friday, August 17, 2007

The total money supply of the USA is currently around 46 Trillion dollars...

Basically US consumers have requested the commercial banking system in the USA to manufacture 46 Trillion dollars...of debt...over the past two and a bit centuries.

In that same period of time...The US Government has "Borrowed" 8.976 Trillion dollars of the 46 Trillion dollar money supply...Or 19% of the total money supply...

To fight WW2 The US Government "borrowed" 50% of the entire money/debt supply.

unfortunately consumers have to pay principle and interest...Just to pay the interest on the 46 Trillion dollars money supply that you all rent from the commercial banks per year at lets say 5% average...runs around 2.3 Trillion dollars...

US consumers are currently requesting the commercial banks to manufacture around 11 Billion dollars of new money/debt per day on average or about 4 Trillion a year...

The US Government is currently "borrowing" about 2 Billion dollars of the 11 Billion dollars that US consumers are requesting the commercial banks to manufacture a day...or around 730 Billion dollars a year.

So not to worry...US consumers are requesting the creation of more than enough new money to service the continued existance of the Total US money/debt supply.

Everyone owes everyone...

money creation is driven by the population...the consumers are demanding it...

Under the 1792 Trimetallic standard or the 1900 Gold standard the USA ran out of the materials needed to construct money to supply demand.

I need money to buy food...

Sorry the mines are at maximum output...and there is not enough...There is no money to employ you so please go find someplace far away so your rotting corpse does not stink up the place when you starve to death...

8.9 Trillion is just the amount of money the US Government has Borrowed from the total money/debt supply of 46 Trillion...

Only workers earning an income can service the continued existance of the money supply...It works out to $306,000 per worker in the USA...

$306,000 per worker in the USA is what is currently owed...

At 5% just servicing the Interest on the public debt of 8.9 Trillion dollars works out to around $2,966 per worker per year.

At 5% the interest on the entire 46 Trillion dollar money supply per worker is around $15,333 per year...amortized at 5% though it's around $19,712/worker/year.

The $46 Trillion works out to around $153,000 for every man woman and child...

Overseas Indexes are being sold off to support the US Indexes...The US consumer is important...If overseas consumer confidence drops...big whoop...Because the rest of the world is the supply while the USA is the demand...If US consumer confidence drops...Demand slows...and there will be a huge glut of supply...

Prices drop enough and there will be an implosion...As long as the USA survives...the bottom can be reinflated...If the USA collapses...it's all over...

There is no economic zone or combination of economic zones on Earth that can come close to matching the US consumer.

People say...what about China and India...Chinese and Indian consumers fuel their consumption with US Dollars they obtained by selling goods and services to US consumers...If the US consumer stops buying goods and services from China and India...their economies stop...

PM's could soar...In dollar value...but not in purchasing power...A dollar value collapse would lead to higher prices...The dollar has been collapsing in value for the past 5 years...Prices of most things you need have followed by rising...

We are not even at a crisis point...when the economy collapses...most of you all will have to live on savings...or at least use your savings to suplement your incomes which are going to deflate drastically...or just totally cease to exist...

Most will spend all their gold and silver at the start trying to survive until the good times return again...But they won't...

From the blab..."The discount rate, or "window," is the interest rate charged to commercial banks and other depository institutions on loans they receive from the Fed's lending facility."

From the FED..."The Discount Window functions as a safety valve in relieving pressures in reserve markets; extensions of credit can help alleviate liquidity strains in a depository institution and in the banking system as a whole. It also helps ensure the basic stability of the payment system by supplying liquidity during times of systemic stress."

One slight problem...The FED is not loaning they are manufacturing money...Or monetizing assets...they are not loaning...

"In order to borrow from the New York Fed, an institution must have on file the necessary authorizing resolutions and agreements, as described in Operating Circular 10 as well as pre-approved eligible collateral."

There is no borrowing of someting that exists in the present...Anything that is being borrowed comes from the future...But since the future does not exist yet...there is nothing there to borrow yet...so all that is happening is the FED is creating new money in the present that has to be paid back in the future when it arrives...

If people are having trouble paying now or can't pay...they certainly won't be able to pay in the future...

The FED had the same system in place before and during the depression...

And when the Future arrived and the people couldn't pay...they were wiped out anyways...

"extensions of credit can help alleviate liquidity strains in a depository institution and in the banking system as a whole. It also helps ensure the basic stability of the payment system by supplying liquidity during times of systemic stress."

Works great when dealing with Christmas...But it's not going to do anything once the Global credit system reaches maximum potential.

It's about as much help as telling everyone to jump up before the elevator they are all trapped in that is falling to the basement reaches the basement.

But It can buy a little more time to put the finishing touches on whatever plans to manufacture a scapegoat are being implemented.

That was already planned to take place before the cut...To of course fool the observers into thinking that the cuts had the desired effect...That the FED is doing something...

Like firemen secretly starting fires to then put them out and save the day...

rates around the world will have to drop as well...Key problem...The Japanese discount rate dropped from .5% to .1% the last crisis 1997-2001...the asian meltdown...They are still at 0.1%...There is nowhere for them to go...you need massive volume to support a rate that low...lower than 0.1%...to lets say...0.05% or a 50% cut to the Japanese discount rate and you need twice the volume...

US consumers have to request commercial banks to manufacture twice the amount of money that they did 2001-present...

In 2001 the household debt to income ratio was 80%- 85%...now after the binge...it's at 110%...past 100% and consumers are forced to request less and less money to be manufactured...while prior to 100% they can and did request more and more money to be manufactured...been doing it for decades...But are basically at the end of the credit line.

There is no volume...and ultimately rates would have to go negative to obtain the required volume...But Banks operate like everything else...on profit...Paying consumers to request money creation so you can obtain an income will not work...

Lets say you earn a living creating money for consumers that request it's creation...like the banks do...Well if the yield from that operation is -5% and payday comes around and your paycheck is negative 500 dollars...meaning after two weeks of employment you owe 500 dollars...you are going to starve to death pretty quick.

If I have enough food to allow me and my family and one other person to survive a winter and there's me...my wife and two children...and 5 other people...

4 are going to die reguardless of how much I care...Socialism is not about commiting suicide...

Now lets say one of the people pulls a gun and takes control of the food supply and then sets enough aside for their survival and then rations out the rest until it runs out and we all die of starvation before the spring..but the government of the food supply lives...That is not socialism...

Just because someone mentions the word socialism...It doesn't mean they are a socialist or even know what socialism is...

When inflation really takes off...the division of labor will collapse and those without an income will have to live off savings...Like stashes of gold and silver...or stop paying all your bills...stop eating...etc...

People say...If they only had gold and siver in Zimbabwe...they would be doing ok...They did...It was all spent at the start to survive...the savings for a rainy day did not last until the rains eneded unfortunately...

and since Zimbabwe is dependant upon imports (like the USA is) any gold and silver that entered circulation...circulated right out of the country...and didn't come back...

Saturday, August 11, 2007

US consumers request commercial banks to manufacture around 11 Billion dollars of new money every day...38 Billion is equal to about 3 and a half days worth of US consumer production of new money...

All that the FED did was monetize the bad debt by being the buyer of last resort...on the books its listed as an asset backing the money that was created to buy it...Any other consumer or group of consumers in the system could have bought it the same way...Just no one choose to...So the FED did...to help postpone the inevitable a little longer is all...Have to make it until the next election so the newly installed puppet can blame the previously installed puppet for all the austerity measures that will be needed when the system reaches maximum potential and implodes.

All that the FED can do is help postpone the inevitable when help is needed...It can't stop it from arriving...

Yes the game you are all playing is coming to an end...But you all love playing it...You don't want it to end...But it has to...and the new game is the same as the old game...It sucks at the start...Until you think you are winning it and then it's great...Then you get to the end and realize that you were never winning it...That you were a loser the instant you chose to play it...It's why the new game sucks at the start because you know you are going to lose...It takes a few generations before you think you are winning...

You are many years old and expect to live longer...but are just part of humanity which is far older and can live far longer than you.

You are constantly descovering things you forgot but calling the things you discover...NEW...

Of the 8000 individual banks in the USA...only 30% are part of the Federal Reserve system...Any outside of the system that are going to fail...will...

Of those in the system that are going to fail...Most of them will also...Since the FED does not have access to the resources required to sustain all of them even though the FED is technically required to. In most cases it will be far more profitable to herd people into burning pits of diesel. It also mentions a 20 year credit bubble...The previous credit bubble stopped inflating less than previous inflation (deflating) in 1933...So the current bubble that is about to pop is over 70 years old.

For some reason most people think that everything is not connected...It's all connected...

The only way to fight inflation less than previous inflation to maximum potential is with inflation greater than previous inflation to maximum potential...The WAR effort everyone in the USA has been part of for over 70 years now...Until of course maximum potential inflation greater than previous inflation is inevitably reached...Then all the 100's of millions of soldiers fighting every day for more and more and more will be forced to realize defeat and accept less and less and less.

Birth is inflation greater than previous inflation...Death is Inflation less than previous inflation...Fortunately Human beings have the power to reproduce quicker than they cease to exist...As long as the population does not inflate less than previous inflation for very long...humanity will survive...again. Humanity will continue to survive until someone figures out how to stop inflation or the planet ceases to exist...

GOLD is off because it's price is inflated like everything else...When the growth rate of the money supply slows GOLD or anything being inflated by the growth of the money supply can and generally will deflate in price...In 2006 according to the World Gold Council the total identifiable demand was 3,380.4 metric tonnes

1 tonne is 1000 kilograms and there are 2.2 pounds in a Kg so 1 Tonne is equal to 2200 Lb of Gold...

Jewellery consumption accounted for 2279.3 tonnes of the 3,380.4 metric tonnes of total identifiable demand or 67%

Official coin accounted for 129.1 tonnes...or about 4%

Jewellery is hard to eat...And subtracting retail markup leaving just the Gold melt down/content...and most jewellery is not worth much. Soon to be bankrupted people are most likely not going to cause a spike up in demand for Jewellery...

Most of the rise in the price of gold the past few years is from speculators in search of a yield...Yields better than the popping Dotcom bubble was going to supply...

I was telling people in 1998-1999 to dump equities (Nazdaq DOW S&P mutual funds) and buy Gold and silver coins...They just said I was a Y2K nutter and to LOL STFU...

Coins have content and face value...

Pre 1964 US silver coinage very rarely circulates any more...becuase the content of the coins is worth more than the face value...The only way silver coins will circulate again is if the face value is less than or equal to the cost of the content and the economic zone in which they are to circulate is a closed system of trade or has a trade surplus and industrial demand combined with monetary coinage demand is less than or equal to mine supply.

The USA has been living beyond it's means for close to 100 years now. So the inevitable implosion is going to be massive...

Thursday, August 09, 2007

I can't see a gold confiscation...There is no gold standard like there was in 1933...

Any liquidity around will race to where there is a yield...causing a whole bunch of blowoff tops in markets all over the world...Then the implosion will follow.

All the contracts in existance are based on the belief that there will be more money in existance in the future than exists now...They will all be busted...

basically every bill on Earth will at some point become impossible to pay....They are now but more and more money is being manufactured at the request of the consumer to pay all the bills...That is going to end.

The inflation greater than previous inflation of the money supply to maximum potential will reach maximum potential and transform into inflation less than previous inflation to maximum potential...

All the contracts need inflation greater than previous inflation to sustain their existance...inflation less than previous inflation kills them.

Ultimately everyone at some point is going to crack and flip like Cramer.

Screaming for someone or something to save them...

GOLD is off because it's price is inflated like everything else...When the growth rate of the money supply slows GOLD or anything being inflated by the growth of the money supply can and generally will deflate in price...

In 2006 according to the World Gold Council the total identifiable demand was 3,380.4 metric tonnes

1 tonne is 1000 kilograms and there are 2.2 pounds in a Kg so 1 Tonne is equal to 2200 Lb of Gold...

Jewellery consumption accounted for 2279.3 tonnes of the 3,380.4 metric tonnes of total identifiable demand or 67%

Official coin accounted for 129.1 tonnes...or about 4%

Jewellery is hard to eat...And subtracting retail markup leaving just the Gold melt down/content...and most jewellery is not worth much.

Soon to be bankrupted people are most likely not going to cause a spike up in demand for Jewellery...

Most of the rise in the price of gold the past few years is from speculators in search of a yield...

Yields better than the popping Dotcom bubble was going to supply...

I was telling people in 1998-1999 to dump equities (Nazdaq DOW S&P mutual funds) and buy Gold and silver coins...They just said I was a Y2K nutter and to LOL STFU...

Coins have content and face value...

Pre 1964 US silver coinage very rarely circulates any more...becuase the content of the coins is worth more than the face value...The only way silver coins will circulate again is if the face value is less than or equal to the cost of the content and the economic zone in which they are to circulate is a closed system of trade or has a trade surplus and industrial demand combined with monetary coinage demand is less than or equal to mine supply.

The USA has been living beyond it's means for close to 100 years now.

So the inevitable implosion is going to be massive...

Every day in the USA currently...consumers request commercial banks directly and indirectly to manufacture around 11 Billion dollars of new money...or about 4 Trillion dollars of new money a year...

What the FED and ECB are doing is a drop in the bucket...compared to what the population of the USA pumps out every day. [8/9/07 Marketwatch The European Central Bank loaned 49 firms a total of nearly 95 billion euros ($131 billion) -- the most it has ever provided -- after rising worries about spillover from difficulties in the U.S. subprime mortgage market left banks uneasy regarding lending to each other. Across the Atlantic, the Federal Reserve carried out a $12 billion one-day repurchase agreement, on top of an earlier $12 billion 14-day repo.]

In 2002 when I began tracking the consumer the total money supply of the USA was 31 Trillion dollars...since then consumers have requested another 15 Trillion dollars to be manufactured... and the total money supply is now 46 Trillion dollars...

And the total global money supply is around 190 to 200 Trillion dollars equlivent (The monetary system is Global...every country operates the same just the USA is #1 when it comes to how much their consumers pump out into the global economy)...150 Billion is not even 1 tenth of 1% and is about as much as US consumers pump out in 14 days.

Monday, August 06, 2007

Fed does not cut rates...consumers do...when consumers become desperate they accelerate their requests for commercial banks to manufacture money...this surge hits the bond markets causing the bonds to be bid up in price but down in yield...and the bond markets set rates...the FED cuts or raises rates based on the bonds...

When consumers become exausted...they decelerate their requests...the result is bonds being bid lower and yields higher...consumers have been decelerating since 2003 from their 2001 to 2003 desperation phase...

It's why housing and the economy in general is slowing down...Consumers are becoming exausted...There's a limit...consumers eventually consume their ability to consume more and more and more and are forced to consume less and less...

The belief that the fed can raise and lower rates...is a myth...That Jimmy jones cramer...and all of you...in fact most of the people believe is truth...

It's not...

You all believe the FED is a cause when it fact it's only an effect...

Which is good...because when push comes to shove and the top has to give you what you want because there are no other options...they will sell you the torches to burn it down...and later will sell you the hammers and nails to gleefully construct the next nightmare you all will choose to believe is a dream come true...

After all...the federal reserve is the third central bank of the USA...signed into existance by President Woodrow Wilson...

The first was approved by President George Washington...

The FED policy appeared to change in 2004 but short rates began to rise in 2003...where consumers began to slow down...The FED is forced to raise and lower rates based on the bond markets...and consumer consumption drives the bond markets and ultimately interest rates...

The guy obviously does not know how the current monetary system or economy operates...

And a switch back to an economy that is based on pay as you go from buy now pay later would eliminate billions of people...most of you would either have to be left to starve to death or be euthanized...

Guy came to my door...Asking if I could sponsor a child in the third world...He showed me a picture of what a community will look like after all the money is sent...Well I said...You are not educating them to create a credit system like ours...All they will be able to accomplish is become our oblivious slaves...

Like really...they want me to send money to them so that they can get development loans to construct infrastructure...

And the end result has to turn a profit to service the loans...great...a whole bunch of people in one country slaving and dying to support a whole bunch of other people in this country sitting on deck chairs by the pool...

And you want me to pay for that? In the schools you build over there...you are not going to teach them about how the system actually functions...especially the monetary/credit system...How do I know this? Because our educational institutions don't either...

Dr Frank Shostak is a product of this system and he's an oblivious drone...Yes far more articulate than the product of a dirt floor institution in the third world but basically just as brain dead...

Because if new arrivals to planet Earth were actually taught how the system operates...they would see that it's inevitably doomed to inflate to maximum potential and implode...They all would demand it to be changed...The people sitting in deck chairs by the pool would not like that at all...They think the system operates wonderfully...

There is no proper way to defend a credit system...They are all ultimately undefendable...There is never a lasting victory over lies and the war against truth has no exit strategy and always ends in defeat...

And while a central banks claim to raise and lower interest rates...they don't...Consumers dictate the rise and fall of rates...when consumers accelerate their demands for money to be manufactured by commercial banks (desperation)...rates fall and when consumers deccelerate their demands for money to be manufactured by commercial banks (exhaustion)...rates rise...

Consumer demands for money to be manufactured by commercial banks in the USA have been deccelerating since 2003...It does not take much...a 1% drop in the growth rate of the total money supply is more than enough to cause rates to begin rising...

Lets say you have 1 million dollars...and lets say you don't want to work for a living...well then you have two options...spend your million dollars until it's all gone or lend it out and live off the yield...well if no one is willing to borrow your money at 10%/year...You will have to drop your rates...Or you already are living off of everyone else but notice that the current yield is not enough to sustain you...so then you have to raise rates...

It's all based on consumers...If no one is willing to pay for higher rates then they have to drop and if those that are paying are not paying enough then you have to raise rates...

But you will eventually reach the point where no one is able to pay at the lowest rate possible and will not be able to pay higher rates...Then it's game over...

Those that live off of everyone else are forced to liquidate and cut back...

And we are close...closer every day...like a ticking time bomb...you can hear the ticking...you can't see exactally how long until it detonates...It will just keep ticking until...wham...jigs up....like Sept 11...